Having paid output tax, is there any need to pay attention to input?
Many businesses today think: "I have issued a complete VAT invoice to customers, declared revenue, and paid taxes according to regulations", then there is no need to care about input invoices.
However, according to Ms. Nguyen Thi Cuc - President of the Vietnam Tax Consulting Association - this is a misconception and has many serious risks:
Having an input VAT invoice is a mandatory requirement to prove the origin of goods. Especially for items with a high risk of fraud such as consumer goods, phones, cosmetics, fashion, processed foods, etc. if there are no input VAT invoices, the tax authority can consider them as smuggled goods, tax evasion goods" - Ms. Cuc warned.
When is there no need for an input invoice?
However, Ms. Cuc also said that there are still cases where the law allows the need for invoices, instead the statement table:
For example, when buying agricultural, forestry, and aquatic products from people who are not registered for business such as farmers and fishermen businesses can make statements instead of requiring VAT invoices. The list needs to clearly state seller information, quantity of goods, value, address, citizen identification number... but does not need confirmation from local authorities" - Chairman of the Tax Consulting Association said.
However, Ms. Cuc also warned: Listings are only applied to raw goods purchased from individuals who are not in business. If it is also vegetables, meat, fish but bought at supermarkets, cooperatives, or business companies, an invoice must be provided.
No input invoices: High risks
Not only does not have an input invoice cause business households to lose the right to deduct VAT, but it can also lead to more serious consequences.
"Shops selling phones, clothes, shoes... but claiming that they are purchased from outside the market, without invoices, without import invoices - are easily considered smuggled goods. When inspected, the origin of goods cannot be proven, or inventories are not reasonable with declared revenue, they will be handled for tax evasion" - Ms. Cuc warned.
She also gave a real example: "There are cases of buying fake milk - goods with full input invoices, including line codes, including electronic invoices, but in fact they are fake goods. These are goods with real invoices but the goods are not genuine. More dangerous is that if there are no invoices, the risk is almost certain."
The lack of input invoices will make it difficult for businesses to prove the legality of the goods, making it easy to be inspected, processed, and even collected and punished.
Although contract tax is no longer applied, if a business household lends an address to another person to issue a VAT invoice - without actual goods, no inventory, no rental contract... then it can still be prosecuted for tax evasion and fake invoices.
Advice for business households
For business activities to run transparently and avoid the risk of being inspected and punished, experts recommend:
- Always require an input VAT bill when purchasing goods from organizations or individuals with business registration.
- Only use statements when purchasing from non-business people, in accordance with the regulations of the Ministry of Finance.
- Record all input - output documents, in accordance with the scale of operations and tax reports.
- Absolutely do not lend the name of a business household to issue VAT invoices, avoid collaborating in fraud.
In short, input VAT invoices are not only a tax document, but a legal basis to protect business households from risks related to taxes, market management and the law. In the context of tightening the management of individual businesses, the lack of input invoices can turn compliance business households into subjects of handling.
